Yesterday’s market movers
- The US Treasury Department announced plans to sell its MBS (Mortgage-Backed Security) Portfolio in the afternoon. US dollar gained back mildly against major currencies. However, the weak fundamental data from the Existing Home Sales failed to support the dollar. It dropped by 9.6% in February while there was a 3.4% increase in January, almost twice the 4.9% decline predicted by the markets.
Today's market movers
- UK CPI and RPI are due out at 9.30 this morning, both of which are estimated to increase. CPI YoY is the key data release as the prediction is aiming to the 4.2% high level. On the back of the world inflation concerns and the ECB hawkish talk, we would not be too surprised to see a high inflation figure from the UK. However, focus will be on the policy makers’ decision from the MPC minutes and budget statement.
- In the US this afternoon, the Secretary of the US Department of Treasury Timothy Geithner is going to give out the US economy outlook. Since the government has eliminated the possibilities of increasing the interest rate, the market is eager to find out how does the super power deal with the inflation and complex political and economic situation. The dollar affected by multiple external factors will probably remain the uncertainty for the day.